Rockefeller Hughes Corporation
TSX VENTURE : RHC

Rockefeller Hughes Corporation

June 23, 2014 09:19 ET

Rockefeller Hughes Acquires 35% Working Interest in the Woodbine Formation in East Texas

CONCORD, ONTARIO--(Marketwired - June 23, 2014) -

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Rockefeller Hughes Corporation ("Rockefeller" or the "Company") (TSX VENTURE:RHC) today announced that is has acquired a 35% working interest in 1,150 gross acres, targeting shallow oil in the Woodbine Sandstone formation, located in East Texas ("the oil Prospect"). In addition to this shallow oil play, there is a future secondary play, targeting natural gas in the Cotton Valley Limestone Pinnacle Reef formation ("the natural gas Prospect"). These two formations will be known collectively as The Woodbine Prospect and will be operated by Rockefeller. Rockefeller has reimbursed current owner for 35% of the total, up to date expenditure on the project amounting to $684,950.

Purchase Price consists of, above mentioned, reimbursement of expenses plus $700,000 of the carry over the next 3 wells.

The oil Prospect consists of up to 5 drilling locations with objective depths of 5,500 feet ("ft") each. The Woodbine Formation in the area has produced as much as 1,250,000 barrels of oil with an average of 10ft of net pay covering an aerial extent similar in size to the Woodbine Prospect, with initial estimated production volumes of 175 barrels of oil per day, per well. Secondary recovery of oil could recover additional reserves. Historical wells in the area showed a shallow annual decline in production of 15-20% per year. The Prospect has been de-risked through twinning an apparent existing by-passed oil pay zone in an abandoned deep gas well. A second and third abandoned deep well shows possible pay in the same Woodbine Sandstone formation, setting up the trap area. The Sandstone formation pinches out in an up-dip direction and is present and wet, down-dip of the oil prospective acreage. "This is a classic East Texas stratigraphic trap in the premier East Texas producing Woodbine Formation," stated Mr. Robert Karlewicz, Vice President of Exploration.

The natural gas Prospect also consists of up to 5 potential drilling locations targeting the Cotton Valley Limestone Pinnacle Reef formation with objective depths of 16,000 ft per well. Active operators in the trend have reported flow rates of up to 30 million cubic feet of gas per day ("MMcfG/day") and recovered in excess of 20 billion cubic feet ("BCF") per well, for wells that were drilled on the same 50 Square Mile 3-D survey that covers The Woodbine Prospect. Cotton Valley Limestone Pinnacle Reef formation wells have produced with an estimated well life of 20+ years. "Exploration risk is reduced as this prospect is located within a proven and uncompleted reef," added Mr. Karlewicz Vice President of Exploration (a qualified reserves evaluator), Rockefeller Hughes (USA), LLC, a fully-owned subsidiary of the Company.

"With relatively inexpensive Woodbine well completion expenditures of less than $1 Million gross per well, coupled with quick paybacks, significant economic reserves and readily available 3D seismic interpretation, these Prospects represent an exciting and highly accretive addition to our holdings," commented Zoran Arandjelovic, Executive Chairman & CEO. "These are very exciting times for Rockefeller Hughes as we partner with industry leaders to develop prolific oil and natural gas conventional plays," added Mr. Arandjelovic.

About Rockefeller Hughes Corporation

Rockefeller is an emerging junior oil and gas company engaged in the acquisition, exploration, development, and production of oil and gas properties. The Company is listed on the TSX Venture Exchange under the symbol RHC. There are currently 66,147,911 shares issued and outstanding. For additional details please visit Rockefeller's website at www.rockefellerhughes.com.

Forward-Looking Statements

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